11:15:07 AM | 3/10/2008
Vietnam is estimated to have raked in US$696 million from shipping 124,000 tons of cashew nuts abroad in the first three quarters of 2008, up 61.6 per cent on year in value and 14 per cent in volume, latest report by the General Statistics Office showed.
Despite the increases in both volume and value, the Vietnam Cashew Association (Vinacas) said local processing and export companies are faced with a number of difficulties.
The association said many companies have decided to sell their stock at prices equal to or lower than their production costs because loan repayment deadlines are close.
The sale was happening despite expectations that demand for the nuts will increase at the end of the year.
The situation becomes more difficult when foreign customers knew the situation and thus strived to push the prices further down, said Nguyen Duc Thanh, acting president of the Vinacas.
The 2 per cent monthly interest rate that businesses have to pay is too high, Thanh said, suggesting banks should extend loan terms and lower interest rates to help businesses in the cashew industry.
Vinacas has also asked local cashew exporters not to lower their prices as the demand for cashews will surge at the end of this year.
In fact, cashew nut export prices dropped sharply since July 2008, from US$7,900 a ton to US$6,400.
Meanwhile, local companies are facing with a shortage of raw cashew for processing and exporting. As local supply failed to meet demand, the companies have so far this year imported 250,000 tons of raw cashew from African countries, Indonesia and Cambodia.
Nguyen Van Lang, general secretary of Vinacas, said Vietnam planned to increase its cashew area to 500,000 hectares in 2010 from the current 400,000 hectares. Most of Vietnam’s cashews are grown in the southern provinces of Binh Thuan, Binh Phuoc and Dong Nai and the Central Highlands region.
Vinacas said it has already proposed that the government spends VND50-60 billion (US$3-3.6 million) every year to develop cashew growing areas and ensure stable supply.
The association has also called on cashew growers in Cambodia, Indonesia and Africa to increase co-operation with Vietnamese buyers. (GSO Sept Edition, Thanhniennews)
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